Short on time? Here’s what to know:
The moment building work begins, your home is no longer seen as a home, at least not from an insurance perspective. It becomes a building site – to you as well as your insurers – and that brings a different set of considerations.
While your existing home insurance is designed to protect a lived-in property, renovation insurance is designed to cover both the existing structure and the works in progress. It can help protect against events such as fire, flood, theft or accidental damage during the build.
Once work begins, the risks around your property change quickly.
Parts of the property may be exposed to the elements. There might be open access points, structural changes, or exposed wiring. Materials and equipment are often stored on site, and contractors and subcontractors are moving in and out throughout the day.
From an insurer’s perspective, it’s a very different environment.
That’s why many home insurance policies either restrict cover or won’t respond in the way you might expect once work begins. Even where some protection remains, it’s unlikely to extend to the building works themselves or to the contract you have with your builder.
It’s easy to assume your contractor’s insurance will cover the project.
In reality, contractor cover is there to protect the contractor’s liability, not your property or the full scope of the works. It may respond in certain situations, but only where responsibility can be clearly established.
As Douglas Brown, an experienced and trusted expert at Renovation Underwriting explains, the person most exposed is often the homeowner:“What you’ve got to remember here is that the person who is risking most isn’t the builder. It’s you. You own the existing structure, and you’re paying for the works, so if something goes wrong, you’re the one who stands to lose.”
Contractor insurance can also be more limited than it first appears. In some cases, policies won’t respond at all if the terms don’t match the work being carried out, or something hasn’t been disclosed properly.
As Douglas points out in this ‘Renovation uncovered’ podcast series:
“Just because a contractor’s actually got insurance doesn’t mean that that insurance is going to pay.”
It’s important to have the right cover in place before work begins, ideally before contracts are signed.
At Lumley, we work closely with specialist providers, including Renovation Underwriting, to arrange cover that reflects how your project is set up.
We start by understanding the detail, including the scope of works, how the contract is structured, and who’s responsible for each part of the build. From there, we help make sure the right protection is in place from the outset.
If you’re planning building or renovation work, it’s worth reviewing your insurance position early in the process.
It helps make sure everything is set up properly before work begins, rather than trying to resolve issues part way through.
We can help you understand how your current policy applies, where adjustments might be needed, and what type of specialist cover is right for your project.
If you’re about to start a renovation project and aren’t sure what your current policy covers, it’s worth checking before anything begins. A quick review can help highlight any gaps and make sure the right protection is in place from the outset, and our team can talk you through it.
If you’re about to start a renovation project and aren’t sure what your current policy covers, it’s worth checking before anything begins.
A quick review can help highlight any gaps and make sure the right protection is in place from the outset, and our team can talk you through it.
